Saint benilde

International school (calamba), inc.

MODULE 4
TOURISM INFORMATION TECHNOLOGY
Learning Objectives
At the end of the lesson, the student must be able to:
1. define key terms and concepts in information technology;
2. describe the evolution of information technology;
3. recognize the types of information technologies relevant to tourism;
explain the synergies between the travel industry and information technology; and
4. evaluate the strategic applications of information technology in tourism organizations and
destinations

Information Technology (IT)

The application of computers and telecommunications equipment to store, retrieve, transmit and
manipulate data. Information Technology is typically used within the context of business
operations as opposed to personal or entertainment technologies. IT is considered to be a subset
of information and communications technology (ICT).

Information Systems
Information systems are combinations of hardware, software and telecommunications networks
that people build and use to collect, create, and distribute useful data, typically in organizational
settings. An information technology system (IT system) is generally an information system, a
communications system or, more specifically speaking, a computer system – including all
hardware, software and peripheral equipment – operated by a limited group of users.

The Internet is the most important innovation since the development of the printing press
(Hoffman, 2000). There have been significant innovations, such as the railroad, electricity, the
telephone, the automobile, the airplane, radio and television, which had widespread impact on
both business and everyday life. However, the Internet combines many of the features of existing
media with new capabilities of interactivity and addressability; thus, it transforms not only the
way individuals conduct their business with each other, but also the very essence of what it
means to be a human being in society.

Characteristics of Tourism Services

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Pierre B. et.al (2019)

Intangibility
Tourism products are intangible. A night in a hotel, a day in a ski-resort, the calm flight with the
nice attendant, and the smiling tour-guide taking you to the peak of an alpine mountain- all this
cannot be touched. Tourism is all about the time spent and the experience made. The products
sold by tourism companies both can’t be reproduced or reused. Nor can the feeling of
consumption be captured to its full extent. There are merely attempts with photographs and video
cameras. Probably everybody was already in the situation where you showed your holiday
pictures to your family or friends and said “Well, it looked better when I was there. The picture
cannot really reproduce the sentiment. Tourism is a subjective picture planted into the customers’
minds.

Heterogeneity
Tourism services are heterogeneous. They vary in standard and quality over time because they
are delivered by people to people and are a function of human performance. Each service
experience is different because it varies from producer to producer and from customer to
customer. For example, services provided by the same travel agent vary on a daily, weekly and
even monthly basis, depending on the travel consultants’ moods, feelings, attitudes, skills and
knowledge. Travelers are aware of this fact and, as a result, they shop around before they select a
provider.

Inseparability
Most travel products are first sold and the produced and consumed at the same time. This is an
aspect which clearly sets tourism apart from tangible products. When you by a new computer it
is produced and shipped before you see it on the website or at the retailers’ premise. The
consumption of that computer- using it- takes place after purchase at your home. You cannot

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take the hotel room home- only the small bottles of shampoo and toothpaste. And you cannot
enjoy the alpine sleigh ride in your living room. Tourism products can only be consumed
at the suppliers’ premise.

Perishability
Perishability is one of the most important characteristics of tourism industry. The
products/services in the tourism industry are consumed as they are produced. They cannot be
kept in stock or stored. For example, it is not possible to save the spare seat on a flight that is
leaving today and move it to tomorrow if tomorrows’ flight is overbooked. The unsold airline
ticket cannot be stored and used at a later date. Tourism services are short-lived. Unused tourism
services cannot be returned, claimed and resold. Perishability implies that tourism services must
be consumed at the time of their production to avoid a loss.

Lack of ownership
The purchase and consumption of tourism services does not result in the transfer of ownership of
these services. For example, the production and consumption of hotel or airline services does not
result in ownership of airlines or hotel chains. An airline seat or a hotel room cannot be taken
home either. When travelers purchase airline services they purchase a temporary right to a
transportation service, the access to it, the opportunity to use it, and the transport process itself.
However, when purchasing airline services, a customer does not purchase the right to own the
service or the title to that service. In terms of a flight, when the traveler arrives at the destination,
he/she owns only an old ticket and boarding pass.

Inconsistency
Products of the tourism industry always differ. Even the same hotel room in the same week with
the same weather can be perceived differently due to the mood of the chef. It is always about the
experience that the customer makes. Rational products attributes like price, nights of stay, and
additional services can only be compared to a minor degree. It is challenging to deal with the
customer perception of the product (the perceived quality) as it is highly affected by numerous
uninfluenceable aspects such as weather, construction sites, other customers etc. Hence, the
product is very inconsistent and cannot be standardized.

Major Vehicles of Technology in Travel Industry

• Internet
• Reservations Systems
• Computer Systems
• Mobile Communication

Three main sectors in Travel Industry

• Transport sector
Airline ticketing
railway booking
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car/bus rental
• Accommodation sector
Hotel booking
• Attraction sector
Sightseeing
Historical places

Information and Communication Technologies (ICTs) in Tourism

Tourism has closely been connected to progress of ICTs for over 30 years. The establishments of
the Computer Reservation Systems (CRSs) in the 1970s, Global Distribution Systems (GDSs) in
the late 1980s and the Internet in the late 1990s have transformed operational and strategic
practices dramatically in tourism (Buhalis, 2003; Buhalis & Law, 2008). The tourism industry at
first focused on utilizing computerized systems (e.g., CRS, GDS) to increase efficiency in
processing of internal information and managing distribution. Nowadays, the Internet and ICTs
are relevant on all operative, structural, strategic and marketing levels to facilitate global
interaction among suppliers, intermediaries and consumers around the world (Buhalis & Law,
2008; Egger & Buhalis, 2008). In this section, we first provide the concepts and definitions of
the key terms related to the Internet and ICTs. Then we discuss benefits and limitations of the
Internet and ICTs.

Definition and Concepts

World Wide Web (WWW or the Web): a multimedia protocol which uses the Internet to
enable the near instant distribution of media-rich documents (e.g., textual data, graphics,
pictures, video, sounds) and to revolutionize the interactivity between computer users and
servers.
Internet: the network of all networks. It is defined as a network which links multiple networks
and users around the globe and a network that no one owns outright. The terms, the Web and the
Internet, have often been used interchangeably; however, the Web is part of the Internet as a
communication tool on the Internet (Nyheim et al., 2005). Additionally, the terms, the Internet
and ICTs, are often utilized in parallel; however, strictly speaking, the Internet is part of ICTs.
Intranet: a corporate or government network that uses Internet tools, such as Web browsers and
Internet protocols (Turban et al., 2008). Intranets are “closed,” “secured” or “fire walled”
networks within organizations to harness the needs of internal business users, by using a single
controlled, user-friendly interface to support all company data handling and processes.

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Extranet: a network that uses the Internet to link multiple intranets (Turban et al., 2008).
Increasingly enterprises need to formulate close partnerships with other members of the value-
chain for the production of goods and services. As a result, extranets utilize the same principle
and computer networks to enhance the interactivity and transparency between organizations and
their trusted partners. This facilitates the linking and sharing of data and processes between
organizations to maximize the effectiveness of the entire network.
Information and communication technologies (ICTs): ICTs include not only the hardware and
software required but also the groupware, NetWare and the intellectual capacity (human ware) to
develop, program and maintain equipment (Buhalis, 2003).
Synergies emerging from the use of these systems effectively mean that information is widely
available and accessible through a variety of media and locations. In addition, users can use
mobile devices such as portable computers, mobile phones as well as digital television and self-
serviced terminals/ kiosks to interact and perform several functions. This convergence of ICTs
effectively integrates the entire range of hardware, software, groupware, NetWare and human
ware and blurs the boundaries between equipment and software.

Hardware: Physical equipment such as mechanical, magnetic, electrical, electronic or optical

devices (as opposed to computer programs or method of use).
Software: Prewritten detailed instructions that control the operation of a computer system or of
an electronic device. Software co-ordinates the work of hardware components in an information
system. Software may incorporate standard software such as operating systems or applications,
software processes, artificial intelligence and intelligent agents, and user interfaces.
Telecommunications: The transmission of signals over long distances, including not only data
communications but also the transmission of images and voices using radio, television, telephony
and other communication technologies.
Netware: Equipment and software required to develop and support a network or an
interconnected system of computers, terminals and communication channels and devices.
Groupware: communication tools, such as email, voice mail, fax, videoconferencing that foster
electronic communication and collaboration among groups.
Humanware: the intellect required for the development, programming, maintenance and
operation of technological development. Human ware incorporates the knowledge and expertise
pool of the society.

ROLE OF IT IN THE TOURISM SECTOR, AND ITS GROWTH

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The development in the field of IT and ICT has deeply influenced the ways in which tourism
businesses perform their activities. Service standards have rose quite high and customers expect
to be served 24/7 around the year and service is not confined to only office hours.
Leading to the birth of online portals, the travel business was revolutionized forever as these
portals have be successful in effectively organizing and distributing distressed tourism
inventories to the clients. Various hotel chains, amusement parks, luxury trains and most
certainly the leading airlines have all be using IT in order to reach out to customers and allowing
them to directly access their reservation system.
Such application of IT or ICT has only helped these companies in getting better understanding
about the needs of their customers and also helped them in offering them the freedom of choice.
ICT Is critical for strategic management of organizations as they allow
 Expansion into new market
 Empowerment of employees
 Lowering of costs
 Enhancing distribution
Following are some of the many uses of IT/ICT in the field of Travel and Tourism –
E-Tourism
E Tourism or Travel Technology is the digitization of all the processes and value chains in the
tourism, travel, hospitality and catering industries that enable organizations to maximize their
efficiency and effectiveness. The scope of e-tourism includes not just computer reservation
system, but also incorporating the broader tourism sector as well as its subset the hospitality
industry.
Travel technology, includes all business functions such as –
 E-commerce and E-marketing
 E-finance and E-accounting
 E-HRM
 E-Procurement
 E-Strategy
 E-Planning
 E-Management

Application of E- Tourism:
 Flight Tracking System: Travel technology is used to monitor as well as manage
travel, and also includes flight tracking system. Global aviation software such as Plane Finder,

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RadarBox24, Flight Stats.com, etc., are useful in tracing the activities of flights from across the
world.
 Dynamic Packaging: The freedom offered to customers in order to create their own
travel package by choosing the transportation services, flight tickets, accommodation types,
activities to get involved in, rental services, etc. instead of choosing a package predefined by the
agent is called dynamic packaging. This type of packaging witnesses the real time sourcing of
flights, trains, hotels, cars, etc. as per the requirement of the customer.
 Computer Reservation System: CRS is famous for the ability to store the information
and retrieve it when required. It is also used for conducting transactions related to hotel books,
air tickets, car rental, etc. Some of the most widely used CRS around the world are Amadeus,
Abacus (currently owned by Sabre), KIU, Mercator, Navitaire, Sabre, Travel Technology
Interactive, Travel Sky, Travelport, etc. Global Distribution System is a CRS which sells
tickets for major airlines across the globe.
Global Distribution System: GDS forms a is a linkage between the service providers in
the travel industry, such as airlines, hotels, car rental companies and enabling automated
transaction between travel service providers and the travel agencies. It is mainly through GDS,
that the travel agency is able to cater to its needs for various tourism related services, to the end
users, which is the customer. It concentrates across three main domains of the industry, viz.,
accommodation (hotel reservations), ticket reservation in airlines and car rentals. It not only links
the bookings, but also the rates in which each of the services are available. Famous GDS are
Amadeus, Galileo, Sabre, Worldspan, etc.
 Extensible Markup Language (XML): Extensible Markup Language based
technologies are of great importance in the travel and tourism industry. As the support the
reservation of tickets for airlines, or in implementing merchandising functions and optional
services in the booking process. Another important application of XML is the establishing of
direct connections between Airlines and Travel Agencies. In order to create a generally accepted
XML-standard, the Open Axis Group was founded.
 Customer Relationship Management: CRM is famous for the convenience it brings
in when it comes to managing an organization’s interaction, not just with current customers, but
also future customers. CRM helps in analyzing customer data and pulls out the history when
need be which helps the company in understanding the needs of the customer and what to cater
to. This plays a role in the retention of the customer by maintaining ideal business relationships
with customers and ultimately driving sales growth.
 Audio Tours: Another interesting development in the world of Information
technology’s integration into tourism is the Audio Tours. An audio tour is a pre-recorded
message or commentary which includes the details of the places the tourist visits. Usually fed
into a handheld device with headsets, the commentary provides the background information and

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other context related to the place of visit. Usually used in historical sites and museums, Audio
Tours are also available of outdoor tours at selected locations.
 GPS Tours: A GPS Tour, similar to an audio tour includes pre-recorded audio
commentary through a handheld device, for mobile applications such as trains, walking tours,
buses, boats, trolley, etc. GPS tours uses the visitor’s location via satellite technology and
provides the relevant information to them. These tours are available in multiple language
simultaneously which can be downloaded in the cell phones and makes it possible to mine the
common interest location of the visitors using the data from multiple users.
 Biometric Passport: Also known as E-Passport, contains the biometric information
that can be used for identification of the traveler. It combines paper passport along with
electronic biometric information of the owner. Biometrics is all about the analysis of physical
characteristics that are unique to a person. It can include fingerprints, retinal scans and
signatures. It uses contactless smart card technology, including a microprocessor chip and
antenna which is installed in the front or back cover, or center page, of the passport.
 Virtual Tour: A virtual tour is an online media presentation that represents a real
location in the most realistic form possible. It comprises of videos as well as sill images and may
include sound effects, text, narration and music. Virtual Tours are famous in the tourism
industry. Especially hotel chains provide a 360-degree view of not just the room buy also the
amenities and property in general as well

Mobile Technology: Cutting edge developments such as Global Positioning System service,
search based on location, and online mapping facility, which has become possible through
mobile service, has so much more to offer to the traveler at their respective travel destinations.
Personal assistant in travel is yet another advancement which is revolutionizing the industry of
travel and tourism. These applications assist the traveler in having a smooth and safe travel. They
also contribute largely on the distribution of resourceful information including great offers and
important deals.
Social Networks: The development of social networking sites related to travel and tourism allow
travelers to build a network of other travelers and share their travel stories and experiences. The
reviews and feedback left by other travelers gives a realistic picture of the destination or service
provider. Sites such as Trip Advisor, Tripsay, Couchsurfing, GeckoGo, Travbuddy, etc are all
example of such sites.
Space Tourism: One of the latest advancements in the field of travel and tourism is the concept
of taking regular people to space. For the purpose of leisure, recreation or business. As an
alternative tourism, Space Tourism is promoted by organizations such as Commercial
Spaceflight Federation, Russian Space Agency, etc. Remarkable research is still going on in this
domain. A name worth mentioning is Elon Musk from SpaceX who aims at flying two space
tourists around the moon in 2018.
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